Acc 205 (Ash) Week 1 Assingment

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Week One Exercise Assignment Basic Accounting Equations 1. Recognition of normal balances The following items appeared in the accounting records of Triguero's, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability; revenue; or expense from the company's viewpoint. Also indicate the normal account balance of each item. a. Amounts paid to a mall for rent. Expense / debit balance b. Amounts to be paid in 10 days to suppliers. Expense / debit balance c. A new fax machine purchased for office use. Asset / debit balance d. Land held as an investment. Asset / debit balance e. Amounts due from customers. Asset / debit balance f. Daily sales of merchandise sold. Revenue / credit balance g. Promotional costs to publicize a concert. Expense / debit balance h. A long-term loan owed to Citizens Bank. Liability / credit balance i. The albums, tapes, and CDs held for sale to customers. Asset / debit balance 2. Basic journal entries The following transactions pertain to the Jennifer Royall Company: May 1 | Jennifer Royall invested cash of $25,000 and land valued at $15,000 into the business. | 5 | Provided $1,000 of services to Jason Ratchford, a client, on account. | 9 | Paid $1,250 of salaries to an employee. | 14 | Acquired a new computer for $4,200, on account. | 20 | Collected $800 from Jason Ratchford for services provided on May 5. | 24 | Borrowed $2,500 from BestBanc by securing a six-month loan. | Prepare journal entries (and explanations) to record the preceding transactions and events. Description | Amount | Critical Thinking | Conclusion | invested cash and land , | $25,000, $15,000 | Cash and land, both assets, and Revenues are both increased. | Debit Cash. Credit Revenues. | services to Jason Ratchford | $1,000 | Accounts Receivable, an asset, and Revenues are both

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